July 7, 2022
mayank
ICICI Prudential Equity Arbitrage Fund Guidance
NAV Growth : Rs 29.6067
NAV IDCW : Rs 15.5039
Suitable For Which Investors ?
“Arbitrage funds invest in equity shares and derivatives, and earn their returns through the price differential between a stock and its futures. You can expect to earn better returns than what you would get from a bank account.
They are usually suitable to park your money for a period ranging between three months to a year. However, we believe that liquid funds, which have a similar risk-return payoff, are a better alternative for most investors for such a time frame. Arbitrage funds may have some appeal for those who are in the highest tax bracket, given the preferential tax treatment of these funds.
The risk of incurring a loss in these funds over the said time frame is low but they do not guarantee returns or safety of capital.
Remember, these funds usually deliver low returns which are only marginally higher than your bank account. They are not suitable if your aim is to build wealth in the long run.”
Fund’s Investment Strategy :
The scheme seeks to generate low volatility returns by using arbitrage and other derivative strategies in equity markets and investments in short-term debt portfolio.
Fund Manager :
— Kayzad Eghlim
Education : Mr. Eghlim is a B.Com (H) and M Com.
Experience : Prior to joining ICICI Prudential AMC he has worked with IDFC Investment Advisors Ltd., Prime Securities and Canara Robeco Mutual Fund.
— Nikhil Kabra
Education : Mr. Kabra is a B.Com and Chartered Accountant.
Experience : Prior to joining ICICI Prudential AMC from September 25, 2013 he was associated with Sumedha Fiscal Services Limited from October 2012 to September 2013 and Haribhakti & Co. from September 2010 to October 2012.
— Rohan Maru
Education : Mr. Maru is M.Com and MBA in Finance.
Experience : Prior to joining ICICI Prudential Mutual Fund, he has worked with Kotak Mahindra AMC as Fixed Income Dealer and Integreon Managed Solutions as a Research Associate.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 1,000 |
| Min. No of Cheques | 6 |
| Min. Withdrawal (Rs) | 1 |
| Min. Balance (Rs) | — |
| Lock-in Period | Not Applicable |
| Exit Load | 0.25% for redemption within 30 days |
Basic Details
| Fund House: | ICICI Prudential Mutual Fund |
| Launch Date: | 01-Jan-13 |
| Return Since Launch: | 6.91% |
| Benchmark: | NIFTY 50 Arbitrage TRI |
| Riskometer: | Low |
| Type: | Open-ended |
| Assets: | Rs 14,410 Cr |
| (As on 31-May-2022) | |
| Expense: | 0.41% |
| (As on 31-May-2022) | |
| Risk Grade: | Average |
| Return Grade: | Average |
| Turnover: | 121.00% |
ICICI Prudential Equity Arbitrage Fund Guidance Trailing Returns (%)
| YTD | 1-Day | 1-W | 1-M | 3-M | 6-M | 1-Y | 3-Y | 5-Y | 7-Y | 10-Y | |
| ICICI Pru Equity Arbitrage Direct-G | 2.04 | -0.09 | 0.07 | 0.4 | 0.97 | 1.95 | 4.02 | 4.69 | 5.53 | 5.94 | — |
| CCIL T Bill Liquidity Weight | 0.93 | 0.01 | 0.09 | 0.27 | 0.38 | 0.91 | 1.99 | 2.66 | 3.3 | 3.67 | — |
| Hybrid: Arbitrage | 2.04 | -0.06 | 0.08 | 0.4 | 0.96 | 1.95 | 3.87 | 4.55 | 5.34 | 5.85 | — |
| Rank within category | 14 | 25 | 17 | 16 | 14 | 14 | 11 | 11 | 11 | 6 | — |
| Number of funds in category | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 22 | 17 | 15 | 0 |
ICICI Prudential Equity Arbitrage Fund Guidance Peer Comparison
| Fund name | Rating | Launch Date | 1-Year Return | 3-Year Return | 5-Year Return | Expense Ratio | Assets (Cr) |
| ICICI Prudential Equity Arbitrage Fund | 3 star | Jan-13 | 4.02 | 4.69 | 5.53 | 0.41% | 14,410 |
| Kotak Equity Arbitrage Fund | 4 star | Jan-13 | 4.37 | 4.89 | 5.67 | 0.43% | 26,010 |
| Nippon India Arbitrage Fund | 4 star | Jan-13 | 4.29 | 4.89 | 5.82 | 0.34% | 10,809 |
| Tata Arbitrage Fund | 5 star | Dec-18 | 4.09 | 5.16 | — | 0.30% | 9,887 |
| Edelweiss Arbitrage Fund | 5 star | Jun-14 | 4.41 | 5.05 | 5.82 | 0.35% | 7,134 |
Portfolio Analysis
| Number of Stocks | 161 |
| Top 10 Holdings (%) | 27.93 |
| Top 5 Holdings (%) | 17.3 |
| Top 3 Sectors (%) | 0.12 |
| Portfolio P/B Ratio | 2.41 |
| Portfolio P/E Ratio | 16.15 |
| Avg Credit Rating | GOI/Cash |
ICICI Prudential Equity Arbitrage Fund Guidance by Chanakya :
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